Amazon, JPMorgan, and BlackRock are all snapping up space in the new $25 billion Manhattan neighborhood that’s reshaping the city

Tech and financial firms are increasingly moving to Hudson Yards and the surrounding area. The $25 billion neighborhood is the most expensive real-estate development in American history.

Hudson Yards' tallest tower topped out this week.

The ritzy new neighborhood is part of a larger luxury development boom that has accelerated in Manhattan over the past several decades. Once a largely vacant industrial district, Manhattan West has transformed into a hotspot for wealthy New Yorkers.

The tower is part of a new $25 billion neighborhood by the same name. Hudson Yards is the most expensive real-estate development in American history. Located between 30th and 34th street on Manhattan's Far West Side, it features a mix of office space, expensive condo buildings, retail, and outdoor public space.

Big tech companies and financial firms, including Amazon, JPMorgan, and BlackRock, have moved or plan to move to Hudson Yards. These moves point to a larger corporate migration trend from Midtown to the lower end of the island. Much of the city's Fortune 500 is now relocating below 42nd Street, an area with a growing tech scene.

Hudson Yards, which will span 28 acres by 2024, is also part of a larger luxury development boom that has accelerated in Manhattan over the past several decades. The island's Far West Side was once home to warehouses, tenements, and rail yards. Today, it features bars with $14 cocktails, multi-million-dollar apartments that overlook an lush elevated park, boutiques, and restaurants founded by celebrity chefs like David Chang, José Andrés, and Thomas Keller.

The High Line near Manhattan's Hudson Yards. Shutterstock/Marco Rubino

Over the next three years, Amazon is hiring 2,000 more employees for its new 360,000-square-foot office at 5 Manhattan West in Hudson Yards. To attract the online retail giant, New York state provided $20 million in performance-based taxed credits through Empire State Development's Excelsior Jobs Program. New York City is also a finalist for Amazon's $5 billion second headquarters, dubbed HQ2, with Hudson Yards listed as one of four potential sites across three boroughs.

In December, BlackRock, a financial company that manages $5 trillion in assets, struck a deal with Hudson Yards developer Related Companies to headquarter there for at least 20 years, too. As The New York Times reported, BlackRock will move to 15 floors at 50 Hudson Yards in 2022, pledging to keep 2,672 jobs in Manhattan and create another 700. As it did with Amazon, the state has awarded the company special tax credits, which could be worth up to $25 million.

Inside BlackRock's headquarters at Hudson Yards, New York City. Hollis Johnson/Business Insider Many corporations, including JPMorgan, Google Alphabet's Sidewalk Labs, and Coach, have already made the move to Hudson Yards.